J&J Acquires Proteologix for $850M, Gains Early Bispecifics

Johnson & Johnson (J&J) has announced its acquisition of Proteologix for $850 million, bolstering its portfolio with promising bispecific immunology medications. This move includes a key asset, PX128, which is poised to enter phase 1 clinical development. PX128 is a bispecific antibody targeting both IL-13 and TSLP, and it is designed for the treatment of atopic dermatitis (AD) and severe asthma. This acquisition is part of J&J’s strategic expansion in the field of immunology.

Proteologix’s portfolio also includes PX130, another bispecific antibody in preclinical development. PX130 targets IL-13 and IL-22 and is being developed for moderate to severe AD. J&J believes that targeting multiple pathways in these heterogeneous diseases could enhance treatment efficacy and improve remission rates. David Lee, J&J’s global immunology therapeutic head, emphasized the potential for PX128 and PX130 to offer best-in-disease efficacy by addressing different disease-driving pathways in AD patients.

The acquisition reflects a broader industry trend of interest in TSLP-targeting biotechnologies. Recently, Uniquity Bio launched with $300 million from Blackstone's life science arm to advance its anti-TSLP candidate into phase 2 studies. Similarly, Aiolos Bio received over $200 million in funding before being acquired by GSK for up to $1.4 billion. Targeting IL-13 has also garnered significant interest, exemplified by Sanofi and Regeneron’s Dupixent, a well-known treatment in this space.

J&J’s deal not only enhances its pipeline with PX128 and PX130 but also brings additional bispecific antibody programs that could be applied to other diseases. This acquisition follows a previous $750 million deal with XBiotech in 2019, which ultimately did not meet expectations. The antibody acquired in that deal, bermekimab, was discontinued as a treatment for eczema, resulting in a $610 million impairment charge.

This latest acquisition marks J&J’s second significant purchase of the year. Earlier, the company acquired ADC biotech Ambrx for $2 billion. J&J CEO Joaquin Duato hinted at further mergers and acquisitions, expressing continued interest in expanding in areas where the company has internal expertise, particularly in neuroscience and immunology. Duato indicated that while the company prefers to leverage its existing capabilities, it remains open to exploring new opportunities to strengthen its portfolio.

This strategic move by J&J underscores the company’s commitment to advancing its position in the immunology sector. By acquiring Proteologix and its promising bispecific antibodies, J&J aims to enhance its treatment options for patients with atopic dermatitis and severe asthma, addressing unmet medical needs and diversifying its immunology offerings.

Overall, this acquisition aligns with J&J’s broader strategy to invest in innovative therapies that have the potential to significantly impact patient outcomes in complex and heterogeneous diseases. As J&J integrates Proteologix’s assets and continues its focus on immunology, the company is poised to make substantial advancements in the treatment of autoimmune and inflammatory diseases, reinforcing its leadership in the pharmaceutical industry.